Note 13 - Business Segments

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 13 – Business Segments

We have four operating segments and three reportable segments, structured by differences in products and services, that are regularly reviewed by our chief operating decision maker to make decisions about allocating resources and assessing segment performance. The segment performance is evaluated at segment operating income which is defined as gross profit less selling, general and administrative expenses and research and development expenses. General corporate expenses, including costs associated with various support functions such as human resources, information technology, finance and accounting, and other general and administrative costs, are allocated to the reportable segments. Our four operating segments have been aggregated into three reportable segments based on the authoritative guidance. We aggregated our Other Products and Services operating segment into the Industrial Analyzer Products and Services segment based on minimal business activity and materiality.

The Permeation segment includes instruments and services that measure the rate at which various gases and vapors permeate through a variety of materials. The Package Testing segment provides customers with the ability to assess package performance, shelf-life, package improvement, cost reduction, sustainability and product safety using Modified Atmosphere Packaging and other technologies. The Industrial Analyzers and Other segment includes advanced gas analysis and monitoring instrumentation used in applications such as oil and gas exploration, beverage and specialty gas analysis, industrial hygiene and safety, food safety and environmental air monitoring.

The accounting policies of the reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements found in our Annual Report on Form 10-K/A for the fiscal year ended December 31, 2013. Intersegment sales for the three and nine-month periods ended September 30, 2014 and 2013 were insignificant.

Financial information by reportable segment for the three and nine-month periods ended September 30, 2014 and 2013 is as follows:

	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	Trade Revenue		Segment Operating Income		Trade Revenue		Segment Operating Income
Permeation	$	5,729,373	$	1,228,580	$	16,621,767	$	2,923,453
Package Testing		7,342,007		992,763		21,320,444		1,701,658
Industrial Analyzers and Other		3,578,247		265,862		9,595,087		768,599
Total	$	16,649,627	$	2,487,205	$	47,537,298	$	5,393,710

	Three Months Ended September 30, 2013					Nine Months Ended September 30, 2013
	Trade Revenue		Segment Operating Income (Loss)			Trade Revenue		Segment Operating Income
Permeation	$	5,596,470	$	1,325,605		$	15,550,031	$	2,630,193
Package Testing		6,328,402		674,797			18,976,020		1,183,960
Industrial Analyzers and Other		2,265,001		(85,434	)		7,799,015		265,383
Total	$	14,189,873	$	1,914,968		$	42,325,066	$	4,079,536